labels: pharmaceuticals
Zydus Cadila, Kopran join handsnews
Nisha Das
18 September 2001

Mumbai: Zydus Cadila, India''s fourth largest healthcare company, and Mumbai-based Kopran Ltd have entered into a strategic alliance in the areas of marketing and manufacturing of formulation brands and collaborative research projects.

As part of this arrangement, Kopran has perpetually assigned its anti-hypertensive brand Aten to Zydus Cadila for a consideration of Rs 75 crore. The product will be manufactured at Kopran.

As per the agreement reached, Kopran will also co-market Zydus Cadila''s new products in the diabetes, central nerve systems and other speciality segments. The products decided upon include Olanzapine (Olzep), Zolipidem (Zopiz) and anti-diabetic Glimepiride (Gliran).

With this, Zydus Cadila becomes the No 1 player in the cardiovascular segment with a turnover of over Rs 100 crore and a market share of 8.3 per cent in the segment. In fact, Zydus Cadila outstrips the current No 1 player in the cardiovascular segment by nearly 20 per cent.

The strategic pact also helps in Kopran entering the fast-growing segments of CNS and diabetology. Zydus Cadila and Korpran will also undertake efforts to research new molecules and commercialise them.

Kopran Research Laboratories has already filed two patents KNC-6 (an anti-ulcerant) and KNC-1206 (a bulk laxative) and completed advance pre-clinical studies based on a platform technology.

A separate technology transfer agreement was entered into for transfer of technology for zero impurity Atenolol that includes milestone payments totalling Rs 20 crore.

Aten (Atenolol), is the largest brand in the cardiovascular segment. Aten, today, ranks within the top 50 Indian Pharma brands. The brand is ranked 33 with a market share of 39 per cent in its category and a growth of 18 per cent (ORG data for the month of July 2001.) The brand''s present turnover is Rs 37 crore.

The group will finance the acquisition partly through debt and partly through internal accruals. Elaborating on this strategic initiative, Zydus Cadila managing director Pankaj R Patel said: "Our strategy over the last few years has been to identify and exploit opportunities that can make a significant difference to our topline and bottomline growth. This strategic pact strengthens our core areas and reinforces our market presence. We saw Aten as a good fit in terms of its size and presence in the cardiac care market. It will certainly add value and help consolidate our cardiac-care product portfolio."

Zydus Cadila has been fortifying its presence in the formulations market with a series of strategic deals. The group acquired Recon Healthcare Ltd, to strengthen its presence in the formulation business in the southern markets. The group has also acquired Mumbai-based German Remedies, gaining entry into women''s healthcare, respiratory and oncology segments.

Zydus Cadila also acquired five formulation brands, Deriphyllin, Paractol, Ildamen, Xipamid, and Beta Xipamid from German Pharma major Asta Medica. Kopran managing director Surendra Somani has said that with Aten in Zydus Cadila''s fold, Kopran would have phenomenal opportunity to introduce new products and enter new therapeutic groups.

While on one hand Aten would grow faster in the hands of Zydus Cadila, Kopran would be able to achieve higher growths through its strategy of launching new products.

Commenting on the overall strategy, Somani further said that Kopran had broad-based itself into basic research, speciality bulks, new dosage forms, OTC products and international business. The inclusion of Aten takes Zydus Cadila''s combined turnover closer to the Rs 1,000-crore mark. With a contribution of 19 per cent, the cardiovascular segment has emerged as the largest contributor to the group''s domestic formulations business.

Aten (Atenolol), which has been growing at the rate of 18 per cent (ORG, month of July 2001), now joins Zydus Cadila''s high profile cardiac care brands which include Atorva (Atorvastatin), Losacar (Losartan), Amlodac (Amlodipine) and Carvil (Carvedilol).

Over the last two years, the group has launched a slew of blockbuster products, the most recent ones being Noklot (Clopidogrel) and Glizone (Pioglitazone). By unlocking values through this initiative, Kopran would be able to fund its research programme, to take NCEs to market, invest in growth of brands in formulations and OTC business apart from enhancing its international business.

Smyle has been enjoying a 100-per cent growth rate since the last few years and its sales is expected to cross Rs 40 crore in the current year. It may be noted that during the business re-engineering exercise, Kopran Pharmaceuticals Ltd, marketing the whole range of Smyle brand is under a scheme of merger with Kopran Ltd.

With the OTC business under the umbrella brand of Smyle coming into Kopran, its sales and profitability would receive a major boost. Among new products, Kopran has recently launched Cholestat (Atorvastatin), Ziflam (Rofecoxib), Fintride (Finasteride) and a whole range of dry powder inhalation systems and capsules under the umbrella brand of Vent Easecaps and Easehalers. The Dry Powder Inhalers are the fastest-growing segment in Asthma.

Zydus Cadila has been leveraging its strength in new product development to introduce several new products, many of them for the first time in India.

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Zydus Cadila, Kopran join hands